LEBANON, Tenn., Sept. 18, 2018 /PRNewswire/ -- Cracker Barrel Old Country Store, Inc. ("Cracker Barrel" or the "Company") (Nasdaq: CBRL) today reported its financial results for the fourth quarter and for the full fiscal year ended August 3, 2018.

Fourth Quarter Fiscal 2018 Highlights

• Compared to the prior year fourth quarter, comparable restaurant sales declined 0.4% and comparable store retail sales increased 1.3%
• On a GAAP basis, earnings per diluted share were $2.55 compared to $2.23 in the prior year quarter. Adjusted for the impact of the extra week in the current fiscal year, adjusted earnings per share were $2.19 (see non-GAAP reconciliation below).
• The Company announced that its Board of Directors declared a regular quarterly dividend of $1.25 per share to common shareholders.

Full Year Fiscal 2018 Highlights

• For the full fiscal year, comparable store restaurant sales growth of 0.6% and traffic of -1.9% outperformed the casual dining industry.
• Fiscal 2018 GAAP earnings per diluted share were $10.29; adjusting for the $1.06 impact of the one-time non-cash revaluation of our net deferred tax liability that occurred in the second quarter, EPS was $9.23; further adjusting for the estimated $0.36 impact of the 53^rd week, EPS was $8.87 (For a reconciliation of GAAP to non-GAAP financial measures, please see the tables accompanying this release.)
• During fiscal 2018, the Company declared regular quarterly dividends totaling $4.85 per share. Additionally, the Company declared a special dividend of $3.75 per share, bringing the total declared dividends in fiscal 2018 to $8.60 per share.

Commenting on the fourth quarter and full fiscal year results, Cracker Barrel President and Chief Executive Officer Sandra B. Cochran said, "The softer sales trend we saw in May persisted throughout the quarter, leading to fourth quarter results that fell below expectations. Our traffic was challenged, particularly with lighter users and during the dinner daypart, some of which was attributable to our menu and marketing promotion not delivering the anticipated topline traffic and sales. While our results did not meet our expectations, I am confident that our initiatives and plans for fiscal 2019 will drive improved performance."

Fourth Quarter Fiscal 2018 Results  
Revenue  
The Company reported total revenue of $810.9 million for the fourth quarter of fiscal 2018, representing an increase of 9.1% over the fourth quarter of the prior year. Adjusted for the 53^rd week, total revenue increased 1.3% compared to the prior fiscal year. Cracker Barrel comparable store restaurant sales decreased 0.4%, as a 3.1% increase in average check partially offset a 3.5% decrease in comparable store restaurant traffic. The average menu price increase for the quarter was approximately 2.7%. Comparable store retail sales increased 1.3% from the prior year quarter.

Cracker Barrel comparable store restaurant traffic, average check, and comparable store restaurant sales and retail sales for the fiscal months of May, June, and July and the fourth quarter were as follows:

Operating Income 
Operating income in the fourth quarter was $82.8 million, or 10.2% of total revenue, a decrease from the prior year quarter of $83.2 million, or 11.2% of total revenue. As a percentage of total revenue, increases in cost of goods sold and labor and related expenses were partially offset by reductions in other operating expenses and general and administrative expenses. Adjusted for the impact of the 53^rd week, operating income was $71.5 million, or 9.5% of sales.

Diluted Earnings per Share 
Diluted earnings per share were $2.55, a $0.32 increase over the prior year fourth quarter. Adjusted for the impact of the 53^rd week, diluted earnings per share were $2.19, a decrease of $0.04.  

Quarterly Dividend Declared 
The Company's Board of Directors declared a quarterly dividend to common shareholders of $1.25 per share, payable on November 5^th, 2018 to shareholders of record on October 19^th, 2018.

Fiscal 2018 Results 
The Company reported total revenue of $3.0 billion for the fiscal year, representing an increase of 3.6% over the prior year. Adjusted for the 53^rd week, total revenue increased by 1.6%. Comparable store restaurant sales increased 0.6%, including a 2.5% increase in average check partially offset by a 1.9% decrease in store traffic. Comparable store retail sales were down 0.1% for the fiscal year.

Operating income for fiscal 2018 was $293.6 million, or 9.7% of total revenue, compared to $313.2 million, or 10.7% of total revenue, in the prior year. Adjusted for the 53^rd week, operating income was $282.4 million, or 9.5% of total revenue.

Fiscal 2018 GAAP earnings per diluted share were $10.29, including the estimated $0.36 benefit of the extra week in the fiscal year, a 22.9% increase over EPS of $8.37 in the prior year. Reflecting our one-time non-cash revaluation of our net deferred tax liability associated with the Tax Cuts and Jobs Act of 2017 that occurred in the second quarter, adjusted EPS was $9.23, including the benefit of the extra week in the fiscal year. 

Adjusting for the impact of both the 53^rd week and the one-time non-cash tax revaluation of our net deferred tax liability, earnings per diluted share were $8.87. (For a reconciliation of GAAP to non-GAAP financial measures, please see the tables accompanying this release.)

Fiscal 2019 Outlook 
For fiscal 2019, the Company expects total revenue of approximately $3.04 billion reflecting the expected opening of 8 new Cracker Barrel stores, as well as projected increases in comparable store restaurant sales growth in the range of flat to 1%, and comparable store retail sales growth in the range of flat to 1%. The Company projects food commodity inflation of approximately 2% for the year. The Company projects operating income margin to be approximately 9.3% as a percent of total revenue. The Company expects depreciation expense of between $110 million and $115 million; net interest expense of approximately $17 million; and capital expenditures of approximately $160 million to $170 million. The Company anticipates an effective tax rate for fiscal 2019 of between 17% and 18%. The Company projects earnings per diluted share for fiscal 2019 of between $8.95 and $9.10 compared to adjusted earnings per diluted share of $8.87 in fiscal 2018.

The Company reminds investors that its outlook for fiscal 2019 reflects a number of assumptions, many of which are outside the Company's control.

Fiscal 2019 Fourth Quarter Conference Call 
As previously announced, the live broadcast of Cracker Barrel's quarterly conference call will be available to the public on-line at investor.crackerbarrel.com today beginning at 11:00 a.m. (ET). The on-line replay will be available at 2:00 p.m. (ET) and continue through October 4, 2018.

About Cracker Barrel Old Country Store^® 
Cracker Barrel Old Country Store, Inc. (Nasdaq: CBRL) shares warm welcomes and friendly service while offering guests high-quality homestyle food and unique shopping – all at a fair price. By creating a world filled with hospitality and charm through an experience that combines dining and shopping, guests are cared for like family. Established in 1969 in Lebanon, Tenn., Cracker Barrel and its affiliates operate 655 company-owned Cracker Barrel Old Country Store® locations in 45 states and own the fast-casual Holler and Dash® restaurants. For more information about the company, visit crackerbarrel.com.

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Except for specific historical information, certain of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These, and similar statements are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of Cracker Barrel Old Country Store, Inc. and its subsidiaries to differ materially from those expressed or implied by this discussion. All forward-looking information is subject to completion of our financial procedures for Q4 FY 2018 and is provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "trends," "assumptions," "target," "guidance," "outlook," "opportunity," "future," "plans," "goals," "objectives," "expectations," "near-term," "long-term," "projection," "may," "will," "would," "could," "expect," "intend," "estimate," "anticipate," "believe," "potential," "regular," "should," "projects," "forecasts," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology and include the expected effects of operational improvement initiatives, such as new menu items and retail offerings. Factors which could materially affect actual results include, but are not limited to: the effects of uncertain consumer confidence, higher costs for energy, general or regional economic weakness, weather on sales and customer travel, discretionary income or personal expenditure activity of our customers; information technology-related incidents, including data privacy and information security breaches, whether as a result of infrastructure failures, employee or vendor errors, or actions of third parties; our ability to identify, acquire and sell successful new lines of retail merchandise and new menu items at our restaurants; our ability to sustain or the effects of plans intended to improve operational or marketing execution and performance; changes in or implementation of additional governmental or regulatory rules, regulations and interpretations affecting tax, wage and hour matters, health and safety, pensions, insurance or other undeterminable areas; the effects of plans intended to promote or protect our brands and products; commodity price increases; the ability of and cost to us to recruit, train, and retain qualified hourly and management employees in an escalating wage environment; the effects of increased competition at our locations on sales and on labor recruiting, cost, and retention; workers' compensation, group health and utility price changes; consumer behavior based on negative publicity or concerns over nutritional or safety aspects of our food or products or those of the restaurant industry in general, including concerns about pandemics, as well as the possible effects of such events on the price or availability of ingredients used in our restaurants; the effects of our indebtedness and associated restrictions on our financial and operating flexibility and ability to execute or pursue our operating plans and objectives; changes in interest rates or capital market conditions affecting our financing costs and ability to refinance all or portions of our indebtedness; the effects of business trends on the outlook for individual restaurant locations and the effect on the carrying value of those locations; our ability to retain key personnel; the availability and cost of suitable sites for restaurant development and our ability to identify those sites; our ability to enter successfully into new geographic markets that may be less familiar to us; changes in land, building materials and construction costs; the actual results of pending, future or threatened litigation or governmental investigations and the costs and effects of negative publicity associated with these activities; practical or psychological effects of natural disasters or terrorist acts or war and military or government responses; disruptions to our restaurant or retail supply chain; changes in foreign exchange rates affecting our future retail inventory purchases; implementation of new or changes in interpretation of existing accounting principles generally accepted in the United States of America ("GAAP"); and other factors described from time to time in our filings with the Securities and Exchange Commission, press releases, and other communications. Any forward-looking statement made by us herein, or elsewhere, speaks only as of the date on which made. We expressly disclaim any intent, obligation or undertaking to update or revise any forward-looking statements made herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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SOURCE Cracker Barrel Old Country Store, Inc.